The Surface Mining Control and Reclamation Act of 1977 ensures that before a mining permit is issued, all applicants must submit a reclamation plan and post a reclamation surety bond or performance bond to ensure that they follow reclamation procedures. The mining project cannot begin until the plan is approved and a surety bond is secured. These bonds are required for coal or surface mining and each state or the federal government may have different requirements for the initial approval process.
The surety or performance bond ensures that there is enough money to complete reclamation. The amount of the bond must equal the amount of the proposed reclamation plan. The surety or performance bond will not be released until the state or federal regulatory office had determined that the reclamation is successful. This can be a long period of time, such as over 10 years after the reclamation has been completed.
The surety or performance bond will be determined by the amount of funds that it would take to complete the full reclamation project in the event the applicant does not follow through on the contract. The premium would be a percentage of the bond amount. Credit and financial statemetns help determine the premium amount.
SuretyGroup.com writes Reclamation Bonds for mining operations. We offer no-obligation quotes and fast, friendly service.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application